How to Pay Back Taxes in Installments
Creating the Contract
- 1). Fill out and sign your federal income tax form.
- 2). Print a copy of Form 9465, Installment Agreement Request (see irs.gov). The form is also available at IRS offices and in Package X.
- 3). Fill in your name or names, Social Security number or numbers, and address.
- 4). Omit the lines that ask for your phone numbers, bank and employer if you find this invasive. This information is not required.
- 5). Enter the form number that you used - 1040, 1040A or 1040EZ; the tax year ' 1999 if it's the current tax return; and the amount of tax you owe.
- 6). Decide how much money you can send in now. Make this proportionate to your bill. You need to show that you are making a good-faith effort to pay.
- 7). Determine how much you can pay each month. Make it a realistic amount, but try to pay in full within 12 months.
- 8). Enter the day of the month the IRS will receive your monthly payments. Base this on your payday and the speed of the mail.
- 9). Fill in your bank information only if you want the payment automatically deducted from your bank account each month.
Sign the form; both spouses must sign if you're married filing jointly.
Attach the form to the front of your income tax return.
Mail the forms to the IRS with your initial payment.